Diamonds and Dogs

10-19-22

Netflix (NFLX) jumping 13% on earnings as analysts say the company is back on track. Netflix easily beat estimates as sales rose 5.9% to $7.93 billion. The key stat everyone was watching was net new subscribers which grew to 2.41 million compared to prior expectations of a million.

Generac (GNRC) inventories keep piling up. Generac is down 24% as the company lowered growth to 22% to 24% compared with estimates of 36% to 40% growth. The cut amounts to about $560 million in lost sales or almost 11% of Wall Street's $5.2 billion estimate for 2022 Generac's top-line revenue. Earnings before interest, taxes, depreciation, and amortization, or Ebitda, are also taking a hit. Third quarter Ebitda is now expected to be $184 million; Wall Street had been looking for about $309 million. The weakest segment is residential product sales which continue to come under pressure.

Diamonds and Dogs market commentary is a journal of daily observations on anything that happens to be of interest to our author. Obviously, our primary focus is the stock market and world economic events, but for this page we have no defined topics. We want this page to be dedicated to the interests, concerns, and possibly to the financial gain of our clients and friends. All comments contained herein are for informational purposes only, and should not be considered as a solicitation to buy or sell any security. The firm does not guarantee the accuracy or completeness of the information or make any warranties regarding results from it's usage.